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The Owners of a Company Change Their Decision to Finance

Question 21

Multiple Choice

The owners of a company change their decision to finance by issuing more shares.Instead,they take out a long-term note with their bank.What will be the repercussions of this change in decision?


A) return on assets will increase
B) return on assets will be unaffected
C) financial risk will be lower
D) financial risk will be unaffected

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